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Ford Senior Master

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I assume you pass the destination charge onto the purchaser. How do you come to the roughly $70K cost for a $73k MSRP Lightning?
I am the purchaser. As already stated D-plan discount is 2.25% of MSRP less Destination and Delivery plus $275 fee plus a $100 doc fee.

 

Fordskeptic

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I misunderstood, but now I get that you are the purchaser.....you get employee pricing. Unfortunately, I am not eligible for D plan and think most reservation holders aren't either.
 
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denny@KMFord

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It's actually 1400 dollars but that really was not my point. The invoice structure and dealer payment structure appears to be a huge win for the dealer at the cost of discounts across the board aand the loss of X-Plan completely.
As the dealer I can tell you we do not win on this hybrid invoice structure. Regardless of which plan a customer uses the reimbursement to the dealer will not bring them whole. It is all based on percentages.

Trust me I would much rather give a lower sale price to my employee on D-Plan than the current structure. because the reimbursement to me will be no different at the end of the day. The only difference is my employee would get a lower sale price.

This new structure also makes it harder for us to balance schedules as well which is a whole other topic.

Not to mention a little over a year ago Ford reduced hold back from 3% to 2% which is a 33% reduction in the amount Ford paid us.

At the end of the day I still think if everyone paid MSRP it would be a lot easier all the way around.
 

GarageMahal

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It's actually 1400 dollars but that really was not my point. The invoice structure and dealer payment structure appears to be a huge win for the dealer at the cost of discounts across the board aand the loss of X-Plan completely.
You make a very interesting point. I has assumed the new pricing model was better for the consumer but don't have the data to prove that. I wonder what the price an ICE would come out to using the new method for computing MSRP vs. the current MSRP.

It does appear that comparing the MSRP for the Lightning to an ICE F-150 isn't going to be apples to apples...
 

Ford Senior Master

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As the dealer I can tell you we do not win on this hybrid invoice structure. Regardless of which plan a customer uses the reimbursement to the dealer will not bring them whole. It is all based on percentages.

Trust me I would much rather give a lower sale price to my employee on D-Plan than the current structure. because the reimbursement to me will be no different at the end of the day. The only difference is my employee would get a lower sale price.

This new structure also makes it harder for us to balance schedules as well which is a whole other topic.

Not to mention a little over a year ago Ford reduced hold back from 3% to 2% which is a 33% reduction in the amount Ford paid us.

At the end of the day I still think if everyone paid MSRP it would be a lot easier all the way around.
I had not thought about balancing the relevant accounting schedules. I will have to ask my Comptroller about that and how it will effect the financial statement at the end of the month. I think it is just moving the margins around to other lines that are not commisionable to salespeople or managers.
I think much of it is dependent on a particular dealers pricing/ business model which is kind of out of bounds here but is an interesting topic. Good Dealers will always win. I've been at mine for 27 years.
 


sollie

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Sucks about no X-plan, but I have to say, buying a bunch of ford stock (stock and options) back when the lightning was announced, just to ensure I get the x-plan, has netted me wayyy more than the x-plan is worth.
I'm kicking myself for not doing this.
 
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If Ford would have offered X-Plan why would it have been a cluster? This is just out of curiosity. We actually did X-Plan on Bronco and had no issues.
I'm late with a reply, but I must have communicated my thoughts poorly. If ford had allowed xplan it wouldn't have been the mess it is right now. Many, many people wouldn't have gone to SAC or Granger if they could have just gotten the xplan guarantee from their local store. I also realize you guys honored your commitment to xplan (through Oct 2020 I think). I looked into switching my reservation after that point, but was rightly told I was too late.
 
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